Several B-Schools Freeze MBA Tuition

MBA Applicants Target B-Schools in the Strongest Economies

 

For years, students chose schools based on specialty and quality of education. In the wake of stagnant economic growth, a new factor has entered their decision-making: Jobs. So where are prospective MBAs heading these days?

According to Matt Symonds, chief editor of mba50.com, they are flocking to Europe and China!  He notes that economic growth has drawn students to German business schools. Similarly, Switzerland’s high per capita wealth is boosting their MBA programs.  Of course, export juggernaut China – which has lifted over 660 million people out of poverty since 1981 according to The Economist – offers one of the world’s fastest growing markets. As a result, schools like Shanghai’s CEIBS and Peking University are seeing increased applications.

In fact, jobs are now the #1 factor in choosing a school according to a recent Quacquarelli Symonds study, which showed that 51 percent of MBA applicants choose a business school based on where they hope to work. As Symonds notes, “while the appetite for business school education is still there, those willing to invest the necessary time, effort, and money are looking hard at what return on investment they will experience, not just in the long term, but as soon as they graduate.”

Source: Bloomberg Businessweek

Is It Easier to Get Admitted Into An Online MBA Program?

 

We’ve all endured the jokes about the online students. They’re the ones who couldn’t get into a real program. They’re supposedly older and slower. As a result, their instructors dilute the curriculum to pass them through. No harm, some people think. Most drop out, as the cliché goes. Recruiters don’t take online degrees seriously, anyway. Their coursework is the equivalent of those “jock classes” in undergraduate programs. And their tuition pays for the real students in the brick-and-mortar classes.

Sounds harsh, you say? Sure! But is it true? As always, the answer is, “it’s complicated.”

Let’s start with who attends online courses and why. It’s no secret: They’re older students juggling careers and families. Their undergraduate grades may not have been stellar. Due to their time away from school, their GMAT scores may be lower than younger students.

So is the bar set lower for online students? Well, the admissions rates would lead you to believe that. According to US News and World Report, “the average acceptance rate for the fall entering class of 2012 was 19 percent. At the 10 highest ranked business schools with online MBA programs, average acceptance rate for 2012 was 64 percent.” If acceptance rates are extended to lower ranked brick-and-mortar and online programs, the Graduate Management Admission Council (GMAC) projects them to be 45 percent and 82 percent, respectively. So yeah, it is easier to be accepted into an online program.

Of course, online programs cater to a different student body: Adult learners. As a result, those classes must be more flexible. For example, the internet-based model enables schools to quickly scale up and down, something that a brick-and-mortar model takes years to accommodate. And admissions teams are seeking something different from online students: Professional accomplishments. What’s more, online programs also attract a bevy of international students. For example, the University of Indiana’s Kelley School of Business has a 39 percent acceptance rate for campus-based students and a 76 percent rate for online. When international students – who often have higher credentials – are factored in, the online acceptance rate “is only five to 10 percentage points higher than its on-campus counterpart.”

So are admissions standards more lax for online students? Sure. But when you factor the deeper professional experience, global flavor, and broader networking possibilities of an online program, they may just be bargain!

Source: US News and World Report